Avis Budget Group Announces Closing of Offering of $300 Million of 4.875%
Proceeds to be Used to Repay Corporate Debt
PARSIPPANY, N.J., Nov. 8, 2012 (GLOBE NEWSWIRE) -- Avis Budget Group, Inc.
(Nasdaq:CAR) announced today that its wholly-owned subsidiary, Avis Budget Car
Rental, LLC, has completed an offering of $300 million aggregate principal
amount of 4.875% senior notes due 2017.
The Company intends to use the proceeds of the offering plus available cash to
redeem all $325 million of its outstanding 7.75% senior notes due 2016.
"We are delighted to be able to extend our debt maturities and reduce our
corporate interest costs with this offering," said David B. Wyshner, Avis
Budget Group Senior Executive Vice President and Chief Financial Officer."In
addition, we now expect that we will have paid down more than $330 million of
corporate debt with available cash in 2012."
The notes, which were priced at par, are senior unsecured obligations of Avis
Budget Car Rental, LLC and will be guaranteed on a senior basis by Avis Budget
Group and certain of its domestic subsidiaries.
The notes and the related guarantees were offered in the United States to
qualified institutional buyers pursuant to Rule 144A under the Securities Act
of 1933, as amended, and outside the United States pursuant to Regulation S
under the Securities Act.The notes and the related guarantees have not been
registered under the Securities Act and may not be offered or sold in the
United States absent registration or an applicable exemption from the
This press release shall not constitute an offer to sell nor the solicitation
of an offer to buy the notes or any other securities and shall not constitute
an offer, solicitation or sale in any jurisdiction in which, or to any person
to whom, such an offer, solicitation or sale is unlawful.Any offers of the
notes were made only by means of a private offering memorandum.
This press release contains certain forward-looking statements that are
subject to known and unknown risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by such
statements. Such risks and uncertainties include, but are not limited to, the
anticipated use of the proceeds of the offering.Important assumptions and
other important factors that could cause actual results to differ materially
from those in the forward-looking statements are specified in Avis Budget
Group's Annual Report on Form 10-K for the year ended December 31, 2011,
including under headings such as "Forward-Looking Statements", "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition and Results
of Operations" and in other filings and furnishings made by the Company with
the SEC from time to time.Except to the extent required by applicable federal
securities laws, the Company undertakes no obligation to release publicly any
revisions to any forward-looking statements, to report events or to report the
occurrence of unanticipated events.
About Avis Budget Group, Inc.
Avis Budget Group is a leading global provider of vehicle rental services
through its Avis and Budget brands, with 10,000 rental locations in
approximately 175 countries around the world. Avis Budget Group operates most
of its car rental offices in North America, Europe and Australia directly, and
operates primarily through licensees in other parts of the world. Avis Budget
Group has approximately 29,000 employees and is headquartered in Parsippany,
N.J. For more information, visit www.avisbudgetgroup.com.
The Avis Budget Group, Inc. logo is available at
CONTACT: Media Contact:
Avis Budget Group, Inc. Logo
Press spacebar to pause and continue. Press esc to stop.